Experian Debuts Network to Hunt FinTech Fraud
Experian has launched a FinTech-centric version of its fraud prevention network in the US
Announced on Wednesday (May 10), this new iteration of the company’s Experian Hunter data network is being rolled out in response to an increase in fraud in the FinTech sector.
The company said in a press release that the network gives users “a line of sight” to borrower activity across the FinTech sector to identify potential fraud risks. Participants can share fraudulent activity in real time by contributing data that is linked across the network.
“As FinTechs establish new customer relationships or verify existing ones, they can query the network and are alerted to suspicious information when matched with other observed fraud events,” the release said. “FinTechs can then take appropriate action based on the type of fraud risk identified.”
Experian claims its customers have seen – on average – their fraud detection improve by 35% when using the Hunter network. FinTechs will be able to detect fraud, reduce false positive referrals and improve their customer experience, the company said.
The launch comes at a moment when fraud is growing and growing faster, as mentioned here last week, foreign companies to upgrade their defenses.
“Today’s digitized payments landscape has given bad actors an increasingly sophisticated array of tools and tactics to defraud both businesses and individuals, making it critical for organizations to defend their exposure points with a potent mix of future-proof technology, best practices and both consumer – and employee training,” PYMNTS wrote.
Research in the PYMNTS/Clearing House report “Real-Time Payments Tracker: Fighting Fraud in Real-Time Payments” found that the number of attempted fraudulent transactions increased by 92% between 2021 and 2022, while the dollar amount of fraud increased by a whopping 142%.
Meanwhile, the Federal Trade Commission says the amount of money lost to fraud last year was $0.8 billion, a 30% increase from 2021. That number was just for consumers. Businesses had to contend with their own variety and scale of fraud.
The PYMNTS report “The State of Fraud and Financial Crime in the US,” a collaboration with Featurespace, found that the total financial cost of fraud is projected to rise in the coming years, coinciding with an increase in fraud and other fraudulent crimes.
“It’s a continuous spectrum,” Michael Jabbara, Visa’s global head of fraud services, said in an interview in March. “[Businesses need to] think about every interaction across multiple dimensions and think strategically about appropriate security measures to reduce potential fraud incidents.”
